Two episodes of Australian Story screened in February examined St Helens GP Alison Bleaney's claims that the town's water was contaminated by the toxin eucalypt nitens.

Dr Bleaney alleged the toxin was responsible for oyster deaths and cancer clusters in the region.

A panel of independent scientists has since discredited the research of Dr Bleaney and marine biologist Marcus Scammell.

Ms Rattray said yesterday the program had severely damaged St Helens' tourist and seafood industries.

The independent MLC said the national broadcaster must compensate and called for a $20,000 contribution to a St Helens Chamber of Commerce marketing and information campaign.

"The campaign would assist those areas of the St Helens community that have been severely affected by the false report," Ms Rattray said.

"Local people know that the St Helens and East Coast area is a beautiful holiday destination, but thanks to the ABC this fact has been muddied by misinformation aired across the rest of the nation."

An ABC spokeswoman yesterday said the broadcaster was reviewing the program and would respond in due course. The review was sparked by a complaint lodged in July by Premier David Bartlett, who said the program was poorly researched and alarmist.

Australian Story executive producer Deborah Fleming said at the time the program had not taken an editorial position and reported the concerns, and the history of the issue in St Helens.